This paper uses new panel data on the
number of new firm registrations in 109 countries during
2002-2012 to study the relationship between entrepreneurship
and economic growth. The data show strong evidence of a
pro-cyclical pattern in entrepreneurship. An examination of
heterogeneous relationships between new firm registration
and the business cycle finds that higher levels of financial
development and better business environments are associated
with stronger pro-cyclicality of entrepreneurship both
across countries and within countries over time. The results
are robust to various measures of business regulation, such
as the cost and time of starting a new firm and closing an
insolvent firm. These findings suggest that fostering an
efficient regulatory environment for the financial and
private sector is important for encouraging a speedier
recovery in the formation of new firms during economic
expansions and aiding the efficient wind-down of insolvent
firms during economic slowdowns.
Bibliographic Details
| Main Authors: |
Love, Inessa,
Klapper, Leora,
Randall, Douglas |
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| Language: | English
en_US |
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| Published: |
World Bank, Washington, DC
2014-02
|
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| Subjects: | ACCOUNT,
ACCOUNTS,
AGGREGATE DEMAND,
BUSINESS CYCLE,
BUSINESS CYCLES,
BUSINESS ECONOMICS,
BUSINESS ENVIRONMENT,
BUSINESS ENVIRONMENTS,
BUSINESS FORMATION,
BUSINESS INDICATORS,
BUSINESS OWNERSHIP,
BUSINESS REGISTRATION,
BUSINESS REGULATION,
BUSINESSES,
CHAMBERS OF COMMERCE,
COMPETITIVENESS,
CONSUMER DEMAND,
CREDIT CARDS,
DEVELOPED COUNTRIES,
ECONOMIC CONDITIONS,
ECONOMIC DEVELOPMENT,
ECONOMIC GROWTH,
ELECTRICITY,
EMPIRICAL ANALYSIS,
EMPIRICAL EVIDENCE,
ENTERPRISE DEVELOPMENT,
ENVIRONMENTS,
FINANCIAL INSTITUTIONS,
FINANCIAL SUPPORT,
FINANCIAL SYSTEMS,
GLOBAL ECONOMY,
GOVERNMENT ENTITY,
GOVERNMENT POLICY,
INNOVATION,
INTERNATIONAL COMPARISON,
LICENSE,
NET WORTH,
OPEN ACCESS,
OPPORTUNITY COSTS,
PHONE,
POLICY MAKERS,
POLITICAL ECONOMY,
PRIVATE SECTOR,
PRIVATE SECTOR DEVELOPMENT,
PRODUCTIVITY,
REGISTRIES,
REGISTRY,
REGULATORY ENVIRONMENT,
RESULT,
RESULTS,
SEARCH,
STARTUPS,
TIME PERIOD,
TRANSMISSION,
UNEMPLOYMENT,
UNEMPLOYMENT RATES,
USES,
WAGES, |
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| Online Access: | http://documents.worldbank.org/curated/en/2014/02/18931036/new-firm-registration-business-cycle
https://hdl.handle.net/10986/17318
|
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